NuGet web.config.transform issue - asp.net-mvc

Question

I'm creating a custom package that needs to modify the web.config file of the destination application, but my config changes never appear in the destination app after installation.
Here's my web.config.transform file:
<?xml version="1.0" encoding="utf-8" ?>
<configuration>
<appSettings>
<add key="AppInstalled" value="false"/>
</appSettings>
</configuration>
This key in the appSettings section is never applied.
Here's my nuspec file:
<?xml version="1.0"?>
<package xmlns="http://schemas.microsoft.com/packaging/2010/07/nuspec.xsd">
<metadata>
<id>$id$</id>
<version>$version$</version>
<authors>$author$</authors>
<owners>$author$</owners>
<licenseUrl>http://mvcapp.codeplex.com/license</licenseUrl>
<projectUrl>http://mvcapp.codeplex.com/</projectUrl>
<requireLicenseAcceptance>false</requireLicenseAcceptance>
<description>$description$</description>
<tags>mvc app</tags>
</metadata>
<files>
<file src="\bin\Release\MvcApp.MVC3.dll" target="lib" />
<file src="NuGet\Content\ajax-loader.gif" target="Content" />
<file src="NuGet\Content\web.config.transform" target="web.config" />
<file src="NuGet\Views\Install\Index.aspx" target="Views\Install\Index.aspx" />
</files>
</package>
Here's the command I run to package the project from the VS 2010 command prompt:
nuget pack mvcapp.csproj
Any Ideas?
Thanks.

Answer 1

The web.config.transform file needs to go into the content folder:
<file src="NuGet\Content\web.config.transform" target="content" />

Answer 2

I know this is an old question, but it's one of the top google results when searching for why a web.config.transform won't apply, so I hope I'm not out of place applying this here.
TLDR; - clear your nuget files from the target project's packages directory (or I assume up the version number) between iterations of testing.
Full Version;
I had this problem as well. I could see using NuGet Package explorer that my project was packaged appropriately. I had my web.config.transform under "content", and my libs under their respective lib folders. The dll's were getting deployed, the web.config.transform wasn't getting applied.
The destination project I was testing with was under source control, so I'd add the nuget package, see what happened, then rollback the whole directory. However I didn't notice that the packages folder wasn't under source control, so the folders from my initial package install were in there. I wasn't upping the version number in the package nuspec, either, because I didn't think I had to.
Ultimately I ended up having to clear my nuget package's directory from the project's packages directory, forcing the next nuget install attempt to recreate them.